Working Paper 121 - Financing Goal 1 of the MDGs in Africa: Some Evidence from Cross-Country Data

This study explores the role of development assistance to finance the required growth to reduce extreme poverty by half in 2015 in Africa. The study utilizes the financing gap and “optimal” aid allocation models to explore the implications of efficient aid utilization and global-aid allocation on total aid required to meet goal 1 of the MDGs. The findings suggest that efficiency in the utilization of development assistance by recipients, or optimal disbursement of aid by donors would take the Africa region a long way in reaching the target without additional assistance. This evidence provides empirical support to the recent debate on aid-effectiveness in particular and reforming aid architecture in general.

Working Paper 120 - Community Based Health Insurance Schemes in Africa: The Case of Rwanda

Community-based health insurance schemes (Mutuelles) in Rwanda are one of the largest experiments in community based risk-sharing mechanisms in Sub-Saharan Africa for health related problems. This study examines the impact of the program on demand for modern health care, mitigation of out-of-pocket catastrophic health expenditure and social inclusiveness based on a nationally representative household survey using traditional regression approach and matching estimator popular in the evaluation literature. Our findings suggest that Mutuelles have been successful in increasing utilization of modern health care services and reducing catastrophic health related expenditure. According to our preferred method, higher utilization of health care services was found among the insured non-poor than insured poor households, with comparable effect in reducing health-related expenditure shocks.

Working Paper 122 - Welfare Analysis Using Data from the International Comparison Program for Africa

This paper uses data from the International Comparison Program 2005 to recover income and price elasticity estimates for the African continent using the Extended Linear Expenditure System for 13 broadly defined commodities. The results can be used for aggregate welfare comparison in such global models as GTAP (Global Trade Analysis Project) and exercises to infer welfare impact of relative price shocks at the continental level. In a heuristic way also, it is possible to derive a “utility-consistent” global poverty line from the demand function that could be compared with the popular international poverty lines. Results generally indicate that changes in the price of food items could lead to greater welfare loss compared to changes in the price of energy or other commodities. Income elasticity estimates generally fell within bounds usually found from household surveys. At the continental level, the estimated utility-consistent subsistence expenditure is close to 1.12 dollar a day per person, which is quite close to the 1.08 dollar a day global (international) poverty line used in 2005 to measure absolute poverty.

Taxes and Tax Reform in Ethiopia, 1990-2003

tax reform, fiscal policy, distribution of income, incidence analysis, Ethiopia, Africa

Prospects for 'Pro-Poor' Growth in Africa

pro-poor growth, Africa, Millennium Development Goals, income distribution, poverty

The performance of true seed shallot lines under different environments of Ethiopia

Seven true seed shallot lines were evaluated for 3 years at 3 locations to determine their performance and stability. Stability differences were assessed on the basis of linear regression of the lines on environmental index and on deviation from linear function along with the mean yield. The combined analysis showed that bulb yield over 9 environments ranged from 15.1 to 17.5 t ha-1 with overall mean yield of 16.5 t ha-1, and lines Vethalam, Tropix, Dz-94 and Athlas gave the highest mean yield. The combined analysis of variance showed significant (p<0.05) genotype and genotype by environment effects on bulb yield. The regression coefficient for bulb yield ranged from 0.72 to 1.36. The regression coefficient of two high yielding lines (Vethalam and Athlas) was above 1, and was higher in environments where growing conditions were favorable. High and significant deviations were obtained for lines Tropix and Athlas and these lines were found unstable to change in environment. However, line Tropix showed specific adaptation to low yielding environments of Kulumsa and Melkassa. The best line Vethalam with a small deviation from regression was found widely adaptable to different environments and it was released with local name ‛Yeras’ to be grown in Rift Valley and similar areas in Ethiopia

Dynamics of Poverty in Ethiopia

poverty dynamics, vulnerability, households, duration

Finance and Poverty in Ethiopia: A Household Level Analysis

finance, Ethiopia, Africa, poverty, consumption smoothing

Determinants of vegetable income in the supply chain of perishable agricultural products

The main theme of this thesis is to analyze the impact of supply chain of perishable agricultural products on income derived from vegetables. The study is conducted particularly focusing on irrigation cooperatives located in the southern zone of Tigray. This is due to the highest number of irrigation cooperatives members in the region. Among the vegetables the particular emphasis of the study is on income derived from three vegetables. These are onion, potato and tomato. These vegetables are preferred, on one hand for the reason that they are major sources of income in irrigation cooperatives, and on the other hand for the reason that there are so many constraints in relation to the perishable nature of the products which affects the producer’s income. A total of 120 households from vegetables producers irrigation cooperatives (16 female headed households and 104 male headed households) drawn from two southern zone Woredas. To collect the necessary data for the analysis structured and pre tested questionnaires are used. Focused group discussion and key informant interview are also conducted. Secondary data on basic agricultural and population is also collected to strengthen the analysis. The analysis is conducted using descriptive statistics and empirically. The analysis of the collected data showed that most of the households are illiterate (40.8%). The average age of the households is 40.03 years. The average family size is about 5.41 of which the active labor force is 3. The average land holding is about 0.47 hectare per household of which 0.25 hectares of land on averages used for vegetable production per household. The average ownership of livestock is 4.34 TLU. The majority of the households in the study area become a member of irrigation cooperative voluntarily. The majority of the households identified that irrigation water management and provision of fertilizer as a major benefit obtained from the cooperative. The average years of experience as a vegetable producer of the households is 6.7 years and as cooperative members the average years are 4.6. The income sources of the households are both from agricultural and non agricultural income sources. The average income the households received in the crop year 2008/09 was 10,672.15 birr. Of the total income the average income from off farm activities was 1,095.25 (10.26%) birr. From agricultural activities the households on average received 1267.45 (11.9%), 6,719.83 (62.97%), 1589.61 (14.9%) and 6.66 birr from crops, vegetables, livestock and bee colony respectively. The xvi total income received from sold onion, potato and tomatoes were 806,380 birr in the study area. A total of 748 quintal of onion, 662 quintal of potato and 953 quintal of tomatoes were sold in the production year 2008/09. The average price received per quintal for onion, potato and tomatoes were 364.34 birr, 352.65 birr and 315.20 birr respectively. This income was the highest income received by the households from agricultural income sources. From the identified market channels the channel that stretched as producer – wholesaler retailers, producer – cooperatives – wholesalers - consumers, and producer – wholesalers - out of region are some of the forms of supply chain used for vegetables by the produces. In the supply chain of vegetables wholesalers are found to be the dominant buyers of vegetables. Among the constraints of income from vegetables land size, fertilizer in terms of its cost, perishable nature of the product, shortage of improved seed, irrigation water shortage, storage, technical assistance both for production and marketing, lack of training from the cooperatives and disease and pests are among the major ten rated constraints of income from vegetables. The econometrics result for the determinants of income from vegetables, among the hypothesized seventeen variables six of them found significant. These are vegetable post harvest loss, crop income, distance from major market, distance from major road, off farm income and livestock income. Livestock income is the only variable which affects vegetable income positively. Post harvest loss and crop income are highly significant factors to affect income from vegetables. Other variables like land size, credit, extension service, price information and improved seeds are not significant as expected though they exhibited positive relationship with vegetable income. Based on the constraints to increase income from vegetables, improving the availability and developing ways in reducing the price of inputs, developing drought resistance varieties of seeds, developing crop insurance schemes with minimum premiums, developing farm plan budget, analyzing the cost benefit of market choice, analyzing the opportunity cost of crop and vegetable production are some of the recommendations suggested to increase income of the households in the production of vegetables